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Lenovo Group (HK:0992), the world’s largest PC manufacturer, is accelerating its stockpiling of memory chips as the global semiconductor market tightens amid surging demand from the artificial intelligence sector. Speaking with Bloomberg TV on Monday, Chief Financial Officer Winston Cheng said Lenovo’s inventory of key components is now about 50% higher than normal, reflecting the intense competition for memory chips used in AI data centers and cloud computing hardware.
According to Cheng, the rapid rise of AI infrastructure has significantly strained supplies of traditional memory chips, pushing prices higher at a pace not seen in years. As major producers like Samsung Electronics (KS:005930) and SK Hynix (KS:000660) shift their manufacturing focus toward high-bandwidth memory needed for AI applications, fewer conventional chips are being produced, tightening availability for consumer device makers. This supply squeeze is already fueling concerns about rising prices across the electronics industry.
Lenovo acknowledges that more expensive components could eventually impact consumer electronics pricing, which may affect demand in the coming quarters. However, Cheng emphasized that the company hopes to mitigate cost pressures rather than pass them directly to consumers. Lenovo sees its elevated inventory levels not only as a defensive strategy but also as a competitive advantage, allowing it to maintain product availability while rivals face potential shortages.
The tech giant recently reported a slight decline in September-quarter profit, with increased investment in AI capabilities offsetting strong PC and device sales. Still, Lenovo signaled confidence in its market position, noting during its post-earnings call that it has secured enough memory chip supply to support production through 2026.
The broader industry continues to feel the impact of rising chip prices. Xiaomi (HK:1810), China’s top smartphone maker, has already warned that handset prices may climb next year as memory costs surge. With AI-driven demand showing no signs of slowing, global electronics manufacturers may face continued pricing and supply challenges well into the future.
